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To err is human and to forgive is divine. We all commit mistakes in our lives but in all of them, the most difficult is the financial blunders. In the upcoming festive season of Navaratri, let’s make a pledge to identify and avert them. We will dissect the root of the financial problems and find solutions for the same in this article.

Not saving for the future (Financial Problems 1/9)

Saving for the future from your income is central to achieving your financial goals. It can be saving for retirement, saving for children’s education or house. If you are not saving for your future, you are inviting problems for your future self. Saving timely ensures financial well-being in the future and will keep financial problems at bay.

Delaying to invest until income appreciation (Financial Problems 2/9)

Christopher Walken had said, “At best, life is completely unpredictable.” We do not know what tomorrow holds. If you will keep postponing your investments until your income is as per your choice, you will miss out on the compounding growth of your money. Furthermore, one should start investing from Rs 500 or Rs 1000 and boost their investment. Investing early is the key to avoiding financial problems.


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Not worrying about long-term financial planning (Financial Problems 3/9)

Indeed it is important to care for your family. The best way to do it is by planning. Making a long-term financial plan suggests that you are shoring up your finances for your future requirements. It should be done without hesitation as planning reduces financial problems.

Becoming a slave of Credit Cards (Financial Problems 4/9)

Credit cards as an additional backup and support are a novel concept in times of need. Being extravagant with it and splurging on luxury items is in contrast to its rightful usage. Furthermore, it adds a debt burden on people. It is always good to use your credit cards responsibly. One needs to pay attention to the monthly bills so as to make sure of any fraud or reporting errors as quickly as possible. It will abate all financial problems like theft of the card or debt burden.

Relying on traditional saving instruments only (Financial Problems 5/9)

A great to assimilate wealth is by investing. Long-term investments along with compound interest can give a good amount of money to investors. In contrast, saving instruments like PPF, FD will not be able to capture the comprehensive growth of the economy. Conversely, if you diversify your portfolio and invest in market instruments(MF), fixed-income instruments, or cash, you can increase your returns. The ordinary savings account offers very low-interest rates and is the least rewarding method to save money. Diversification helps in lessening our financial problems as it balances the risks evenly.

Financial Problems

Placing all your bet in one asset class (Financial Problems 6/9)

Retail investors cannot track different asset classes or estimate the long term growth prospects of various investments. As a consequence, they are stuck in one asset class. It is a huge mistake an investor can make. One bad phase for the market or a downward movement can wash out all your savings. You should start diversifying your investments and seek help from a financial advisor. 

To quote an example, if there is an indefinite strike in the railway sector, the stocks would go down. If you had purchased only railway stocks, you will face a huge loss. On the contrary, if you had counterbalanced it with airline stocks, there is a chance of the stocks going up as more passengers would travel with flights. So avoid putting all money in one asset class to keep financial problems like liquidity crunch away.

Procrastinating your retirement plans (Financial Problems 7/9)

The biggest mistake a private sector employee can make is leaving their retirement plan for a later time. They do not have the benefit of fixed income in retirement on the contrary to the public sector. It is not advisable to begin saving at 40 for your retirement. Begin your retirement planning as early as possible and let your money grow. You must remember that inflation is a devil that is ready to eat your pie. Plan for the times ahead with financial problems in mind.

Not having any Emergency Funds (Financial Problems 8/9)

It is always wise to create an emergency fund beforehand as it can help in uncertain times like the ongoing pandemic. Your family will be hugely relieved during the tough phases. In case you have not put aside money for emergency purposes, you are risking your family with a lot of distress. It is the worst financial problem for a family to go through during tough times.

Financial Problems

Ignoring Financial education (Financial Problems 9/9)

The gravest sin one can make is not educating themselves about personal finances. It is not just about being financially aware. It is comprehensively what your behavior is and how skilled you are towards handling your finances. You should educate yourself about the best skills and techniques which will help you in achieving your financial goals. You can negate many financial problems armed with adequate knowledge.


We have discussed the most common mistakes every individual makes in their lives. Indifference towards saving for the future is the prime of all of them. It can jeopardize your future plans in relation to children’s education or buying a dream house. 

Postponing your investments until you are comfortable with your salary is another mistake. Misusing one's credit cards to splurge on unnecessary purchases will only result in huge debts and should be avoided.

 It is also important to diversify your investment instead of investing only in traditional saving instruments which will not capture the full economic growth.

Another mistake is to delay your retirement plans. People often keep it till they turn 40 or 45 which is not ideal. One should begin saving as early as possible. Lastly keeping an emergency fund ready to meet the challenges of the future is highly recommended.

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